The most obvious reason for buyers to buy a home on contract is because they are unable or unwilling to obtain financing through traditional means such as a bank or mortgage broker. If you have poor credit, or a debt to income ratio which the bank feels is too high, buying on contract may be a viable option for you. If you can find a seller willing to sell on contract, you have secured a place to live and your money will not be paying the landlords mortgage. You have just found a way to build equity despite your less than ideal financial situation. Another great advantage to buying on contract is that there are very few closing costs. You'll still want to get a title opinion to make sure you have a clear title, and surely the seller will want a sizeable down payment. But there wont be any loan origination fees, etc. And because there is no underwriting process, you could easily close in 1-2 weeks. Because most sellers will charge you a higher interest rate than a bank would (although banks can charge pretty hefty rates if your credit is below par), you may want to consider refinance with a bank when your credit improves if it improves your rate considerably. There are many factors involved here, so be prudent and check with your accountant, banker, and Realtor when making these sorts of decisions.